Page 2 Brand Analysis Page 3-6 Competitor Analysis Page 7 SWOT Analysis Page 8 Repositioning Page 9 Target Audience Page 10-11 Research Methods Page 12-14 Promotions: Trade Page 15-16 Promotions: Consumers Page 17-18 Promotions: Sales force Page 19 Alternative Promotions Page 20 Budget

Promotional Plan for Utica Club Beer

SALES AND SALES PROMOTION PLAN

 

AIMEE CHIMERA HOLLY NIEMIEC ALANNA FURCO DEVIN CARROL

Page 2 Brand Analysis Page 3-6 Competitor Analysis Page 7 SWOT Analysis Page 8 Repositioning Page 9 Target Audience Page 10-11 Research Methods Page 12-14 Promotions: Trade Page 15-16 Promotions: Consumers Page 17-18 Promotions: Sales force Page 19 Alternative Promotions Page 20 Budget

Promotional Plan for Utica Club Beer

TABLE OF CONTENTS

Utica Club is a local, less expensive beer typically consumed by an

older male demographic. Though it is only distributed in a 90 mile radius from Utica, New York and has the

potential to pull on these local ties, their brand image and resonance is

low. The purpose of this plan is to reposition Utica Club as the historic

and nostalgic low-cost beer for young males, by increasing our

distribution channels and having promotional campaigns in college

cities and towns.  

2  

BRAND ANALYSIS

 Genesse Brewing Company is based in Rochester, New York where it has strong association. The brewery makes a line of Genessee beers, including the iconic Genesee, Genny Light, and the original Genesee Cream Ale. Genesee and Genny Light are direct competitors to Utica Club because they are positioned as craft beers that are distributed locally, with a focus on product quality. They target a similar market to our desired target market for Utica Club, high school graduates and college students with little disposable income.

Pabst Brewing Company was established in Milwaukee, Wisconsin in 1844 and is currently based in Los Angeles. PBR has increased in popularity among urban “hipsters,” especially twenty somethings. The brand values their “authentic” image and targets a market niche through the sponsorship of indie music, local businesses, post-graduate sports teams, dive bars, and radio programming.

3  

COMPETITORS

U"ca  Club   Genesee   PBR  

Price   5   4   4  

Alcohol  Content   5   4   4  

Distribu6on   3   3   5  

Promo6on   3   4   5  

Taste   3   3   3  

Branding   3   3   4  

Industry  Reputa6on  

2   3   4  

Packaging   3   4   4  

4  

COMPETITOR ANALYSIS

Two beer companies that are comparable to Utica Club Beer are Genesee and PBR. Genesee is another more locally distributed, low cost beer while PBR is a more broadly distributed, low cost beer. We analyzed the three competitors based on a number of attributes and gave each beer a rating between 1 and 5 for all the different categories.

For ALCOHOL CONTENT, we also gave Utica Club a 5 and Genesee and PBR 4’s because Utica Club had a bit of a higher alcohol content compared to the others, which is a benefit.

For DISTRIBUTION, Utica Club and Genesee both received 3’s and PBR. Utica Club and Genesee are both locally brewed beers that aren’t distributed to retailers or bars much farther than the upstate New York region, while PBR is a more nationally distributed product that reaches a much larger population.

For PROMOTION, we awarded Utica Club a 3, Genesee a 4, and PBR a 5. Utica Club has not advertised or promoted their product much at all since the 60’s. The Matt Brewing Company, who brews Utica Club, also brews Saranac and puts most of their attention and money into them while Utica Club receives no promotion dollars at all. PBR has had pretty consistent advertising from the

late 1880’s until the 1980’s or so, which is much more than that of their competitors.

For PRICE, we gave Utica Club Beer a 5, the highest score, and Genesee and PBR both 4’s. All three had very low prices, but Utica Club was a bit cheaper than its competitors.

5  

COMPETITOR ANALYSIS

For TASTE, Utica Club, Genesee, and PBR all received a 3 because we found from the results of the survey we distributed that taste of beer wasn’t seen as important as attributes like price and does not seem to taste much different between the three competitors.

For BRANDING, Utica Club and Genesee were both awarded a 3 because they are not well known beers and do not have a well known brand image. We have PBR a 4 since they are much more well known and the brand image of the cans are more easily recognized.

For the INDUSTRY REPUTATION, we rated them similarly as we did for branding. We gave PBR a 4, Genesee a 3, and Utica Club a 2. Since PBR is a nationally distributed beer, it is much more well known in the alcohol industry as a cheap beer option. Genesee is not distributed nationally but is known better than Utica Club in the upstate New York region, so we rated them a 3 and Utica Club a 2 since they do not

currently have much of a reputation at all.

For the PACKAGING attribute, Utica Club received a 3 because their bottles and cans are not very attractive. We gave Genesee and PBR 4’s because Genesee just recently came out with new packaging for some of their beers and PBR has identifiable packaging that most people can easily recognize.

 

6  

COMPETITOR ANALYSIS

Strengths Weaknesses

Opportunities Threats

•  Low cost •  Historic reputation •  Matt Brewing Company

association •  Established distribution

channels •  Local/regional connection

•  Unattractive packaging •  Low brand awareness •  Lack of marketing since

1960s •  Weak online presence

•  Expand distribution •  Increase advertising and

promotions •  College students looking for

cheap beer options •  Trend of supporting local

businesses •  Rebranding

•  Low priced, well-known national brands

•  Low priced beers positioned as “higher-quality”

ex: Bud Light, Bush Light 7  

SWOT ANALYSIS

Based off of our primary and secondary research, it is obvious that Utica Club’s low brand awareness, unappealing branding, and lack of advertising and promotions has contributed to its downfall compared to cheap local and national competitors. Although The Matt Brewing Company has been brewing Utica Club since 1950, its historic and novel brand image has been lost behind the popular Saranac brand. Our primary market research showed that more than 50% of our responders had never heard of Utica Club and more than 65% have never drank or purchased Utica club, which exemplifies that Utica Club has not properly identified a specific target audience to market to. When asked what comes to mind when you think of Utica Club beer many respondents answered “old,” “nothing,” “never heard of it,” “local,” and cheap.” Currently, our target market does not have a clear perception or image of the Utica Club brand. Our secondary research has shown that there is a rising trend in young adults favoring local brews that convey a more “retro” or “hipster” image. Our research also shows that upperclassmen college students and recent grads value price when deciding which brand of beer to purchase, so they are really just looking for a cheap option that identifies with the local area in which they live. With our competitive analysis and research in mind, we have developed a positioning strategy based off of price with a focus on repositioning Utica Club as a “new” product being reborn versus an old product being revived. For males aged 21-29 in the upstate, western, and central New York region, Utica Club is the cheaper version of craft beer among all local craft beers and national brands, because it has a unique, historic background and novel appeal for a low cost. Our repositioning goals are to increase our target market’s awareness and rebrand Utica Club as a simple and contemporary beer with classic and vintage imagery that evokes a nostalgic feel, similarly to PBR’s retro image.

8  

REPOSITONING

Meet Tobi and Derek. The two are roommates both 21 years old who attend Ithaca College and play on the men’s lacrosse team. When they are not at class, they spend their time hanging out with friends on the weeknights, playing video games and going out to the local bars on the weekends. Since they are upper classmen in college, they have limited disposable income but spend it on social activities. They are both primarily beer drinkers and when drinking beer at home, Tobi and Derek prefer a bottled beer but they are not loyal to any particular brand. Their superior buying motive when purchasing beer is always price over taste or brand. Tobi and Derek enjoy sharing a 12 pack of bottled Utica Club on Friday nights before they go out after a long week of classes and practice.

Males aged 21-29

BASES •  Considers themselves an influencer in their

friend group •  Consumes beer at home, at friends homes,

or at bars/club •  Like to try new things and considers

themselves adventurous •  Enjoy socializing with friends •  Have little disposable income

DESCRIPTORS •  Male •  Household income under 80k •  Geographic: upstate, central or western

New York regions •  Social class: college student, post-

graduates, working class, and entry-level jobs

•  Lifestyle: outdoorsy, social •  Currently is a beer drinker

“PEOPLE  OFTEN  COPY  WHAT    I  DO  OR  WEAR.”  “I  WANT  SOMETHING  INEXPENSIVE    

THAT  TASTES  GOOD.”  –  survey  respondent  

9

TARGET AUDIENCE

ONLINE SURVEY

To understand the overall brand awareness of Utica Club and further understand what beer drinkers look for in a beer and their behaviors, we conduced an online survey for primary research. We surveyed at total of 80 people, aged 21-54.

71% of our respondents were aged 21-25 & 52% were male.

Name one thing that comes to mind when you think of Utica Club.

“never heard of it” “local”

“I want to try it”

“old commercials” “the 80s”

“cheap”

When purchasing beer, rank which of the following factors is most important to you? Taste Price & Brand Availability

1

3

2

Rank where do you consumer alcohol most often.

52% At home

46% Bar/Club

40% Friends House

60% of our respondents answered that they are unfamiliar with Utica Club.

10  

RESEARCH METHODS

SECONDARY We used Simmons Oneview data to evaluate our target audiences psychographic, lifestlye, attitudes, and behavioral characteristics in order to create a customer persona.

Media Usage: Male beer drinkers and domestic beer drinkers aged 21-29 indexed over 16 more like than to average person to be heavy social media users. (SIMMONS)

KEY INSIGHTS

Attitudes: Male beer drinkers and domestic beer drinkers aged 21-29 are 64% more likely than the average person to have an interest in college sports and are 24% more likely to have an interest in professional sports than the average person. Males aged 21-29 who are domestic beer drinkers are 9% more likely than the average population to consider themselves good at “convincing others of trying new things.” (SIMMONS)

Behaviors: Males aged 22-24 are more likely to drink beer at a bar or club than 25-29 year olds, while 25-29 year olds drink more beer at home or at a friends house. (SIMMONS)

11  

RESEARCH METHODS

Trade Promotions are key to increasing brand awareness and improving brand image which makes it the most important aspect of our campaign. Our plan is to promote Utica Club beer and encourage resellers to buy the brand. This will include strengthening relationships with current resellers and gain new distributors in the Central New York area. We plan to do so by using free merchandise, beer festivals and displays in college bars.

FREE MERCHANDISE We will provide bars and restaurants free merchandise to encourage the purchase of Utica Club. Items such as t-shirts and koozies. The young adult generation loves to receive free merchandise especially from their favorite beer. This will increase the relationship with potential and current customer with the brand. We want to make sure Utica Club beer is on the customers mind the next time they order a beer.

10  12  

TRADE PROMOTIONS

SYRACUSE BALLPARK BREWFEST NBT Bank Stadium in Syracuse, NY holds their annual Brewfest in the ballpark with 80+ local and abroad brewers. Each year the Brewfest attracts hundreds of attendees who are eager to try new brands of beer. This is a perfect location to set up a Utica Club booth to increase awareness of our brand and to engage with our current consumers and our target audience. We will allow sampling of Utica Club beer an this will encourage the attendees to purchase the product the next time they are buying beer. We also want to promote the brand by selling merchandise which include Utica Club shirts, hats, koozies, and stickers.

13  

TRADE PROMOTIONS

COLLEGE BAR/SPORTS BAR AND RESTERAUNT RELATIONSHIPS Part of our target audience are finishing up their last years in college or have just graduated and still living in the college area. By placing Utica Club beer on tap in local college bars and restaurants we are able to gain new customers and allow our current customers to enjoy our beer while out at a bar. We want to give the college bars Utica Club posters to hang around the bar and Utica Club pitchers to serve the beer in and then keep. This will allow customers to recognize the brand and have Utica Club on their mind the next time they go up to order a drink.

14  

TRADE PROMOTIONS

ANNIVERSARY OF PROHIBITION Utica Club prides itself on being the first beer after prohibition, so what better way to honor that than by celebrating on the day prohibition was abolished? On December 5th, 2016, we will encourage our consumers to “speakeasy” at local college bars with beer pong tournaments, merchandise giveaways, and “face in hole” posters to encourage them to share their experience on social media with the hash tag #UCspeakeasy.

15  

CONSUMER PROMOTIONS

COLLECTOR’S COASTERS Our other consumer promotion is to have six different collector’s coasters that will be placed in randomly selected 6 and 12 pack bottles of Utica Club. They will be promoted on our social media pages, and will help to create a relationship with our brand as consumers try to collect all six. It will also help to encourage repeat purchases, as there are different coasters in each pack.

16  

CONSUMER PROMOTIONS

COMMISSION To encourage the sales force for Utica Club to sell a large amount of beer, we plan to put into effect two sales force promotions. This will motivate sales employees by rewarding them for their superior performance. First the sales force will be given 5% of every sale they make on Utica Club in addition to their salary. There will also be a friendly competition and the highest performer for every quarter will win a $200 Visa Gift Card. This contest will be an incentive to award employees for their hard work and encourage them to sell more. Along with the gift card the sales employee will receive a certificate in recognition of their achievement.

17  

SALES FORCE PROMOTIONS

UPDATE SOCIAL MEDIA Social media is a big part of our target audience’s lives, yet Utica Club’s activity on social media is rather low. We plan to revamp their social media accounts and post more often, which will encourage young consumers to share their experiences with our brand. Social media is also a very cost effective way to market our brand and any upcoming promotions that we have planned.

ALTERNATIVE PROMOTIONS

18  

UPDATE PACKAGING To stay consistent with our new positioning, we wanted to create a more modern, simple package look and feel, including a new bottle, a new can wrap and a new external box. We also discovered in our survey that many beer drinkers prefer a bottle when drinking beer casually versus a can. Another attempt to expand our brand to our target market is to distribute 30 racks cans to local suppliers. Our target audience tends to consume beer socially and in large groups, so this will be the perfect way to increase our chances of getting chosen at the point of purchase.

ALTERNATIVE PROMOTIONS

19  

9%  

71%  

13%  7%  

Consumer  Promo6ons  

Trade  Promo6ons  

Sales  Force  Promo6ons  

Alterna6ve  Promo6ons  

20  

Promo"ons   Price  

Free  Merchandise    (shirts  &  koozies)  

$22,254  

Ballpark  Brewfest   $1,500  

Restaurant/Bar  Rela6onship  (Posters,Pitchers,Kegs)  

$72,280  

Coasters   $2,200  

Prohibi6on  Event  (Beer  Pong  Tournament  &  Merchandise  Giveaway)  

$10,000  

Sales  Force  Compe66on  Prize  ($500  GiZ  Card)  

$2,000  

Commission     $15,000  

New  Packaging   $10,000  

Total  Spent   $139,994